Saturday, January 03, 2009

Unit 2: The government tries to stimulate the Indian economy

This BBC article explains how the government is trying to stimulate the Indian economy

http://news.bbc.co.uk/1/hi/business/7808561.stm

a) Explain the monetary and fiscal policy measures the Indian government is taking
b) Using an AD/AS diagram, explain the intended consequences for the Indian economy
c) Why might this package fail to achieve its objectives?

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